National Stock Exchange (NSE) may have to file again the IPO of its Rs 10,000-crore IPO. Due to the allegation of giving preferential access to some brokers from the exchange, it may have to do this. Capital Market Regulator SEBI Chairman Ajay Tyagi has said this and he has described the co-location hair as a serious issue.
The major stock exchange gave its draft prospectus to the SEBI for public offer (IPO) in December, but getting approval on this came to be fractured due to the sharp rise in the location related to the NSE, alleging that Some brokers had reportedly acquired Preferential Aces in the Exchange system. On the other hand, an investigation is going on to ascertain any unlawful benefit from the broker. There are allegations that due to the collusion of some NSE executives, some brokers have got the preferential access to the exchange.
When asked if the NSE had to file a revised financial statement and DRHP, Tyagi said, “It will be decided, it is a serious matter, it is a serious matter.” If I was the issuer, I would see that these matters should be seen and after this, I will talk to DRHP. ”
While asking if there is a regulatory requirement for filing a revised DRHP (draft red herring prospectus), SEBI chief said, “I believe they will do it themselves”.